How Crypto Exchanges Could Stop Flash Crashes, If They Want (1)

Oct. 22, 2021, 6:04 PM

The cryptocurrency business has a lot to learn from stocks about preventing crashes.

Eye-catching, mistaken plunges are not unusual in crypto. In June 2017, Ether had a harrowing 45 milliseconds that took its price down to 30 cents -- a 99.9% loss. This week, it was Bitcoin’s turn to flash crash: The biggest cryptocurrency dove to $8,200 within a single minute on Thursday from around $65,000 on Binance’s U.S. exchange after an institutional trader’s algorithm encountered a bug and cratered the price.


Stock investors have famously suffered their own scary moments -- Black Monday in October 1987 and the ...

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